By D.E. Smoot Phoenix Staff Writer | Posted: Sunday, August 9, 2015 2:30 am

Muskogee County voters will decide on Tuesday whether eating and drinking establishments should be able to sell liquor by the drink, wine and strong beer on Sundays.

The special election, authorized in June by county commissioners, will be the first time voters here have addressed the issue since 1985, when they initially approved sales of liquor by the drink every day of the year except Sundays. Erasing the so-called blue law from the books in Muskogee County has become a clarion call for the city's retail development efforts.

Mike Miller, who pitched the plan to schedule the special election on behalf of the Greater Muskogee Area Chamber of Commerce's legislative committee, said the local prohibition puts the city and the county at a disadvantage. He told commissioners that changing the law "is not necessarily about what happens on Sunday, it's about the investment that comes to the community ... from outside sources to build new restaurants."

Rickey Hayes, a retail development consultant and founding member of Retail Attractions, said lifting the ban "has the potential" to do three things: boost economic development opportunities, sales tax revenue and private investment in retail development. 

A market opportunities survey conducted by Retail Attractions estimates local dining and drinking establishments miss out on about $150 million in sales annually as a result of the Sunday ban. Officials have been unable to quantify the amount of new revenue that would be generated by liquor, but they have cited reports that indicate food and beverage sales increased 24 percent in Rogers County after voters there lifted the Sunday prohibition.

An analysis of sales tax revenue reported for the cities of Enid and Claremore since voters in Garfield and Rogers counties, respectively, fails to support those numbers. Voters in both counties elected during the past two years to allow liquor to be sold by the drink on Sundays at dining and drinking establishments.

Garfield County voters lifted the prohibition on liquor-by-the-drink sales on Sunday and three summer holidays in October 2013. Reports published by the Oklahoma Tax Commission show sales tax revenue in Enid, the county seat, peaked that same month at $3.01 million — monthly disbursements lag collections by a few weeks — and has not hit that level since.

In Rogers County, where voters approved Sunday sales in June 2014, sales tax revenue has remained relatively flat in the county seat of Claremore. OTC reports show June 2014 sales tax disbursements there totaled just less than $935,000 and has exceed that amount only twice — hitting a high of about $988,000 — since Sunday sales began in July 2014.

Sales tax revenue in Enid actually has trended downward since July 1, 2013, the beginning of fiscal year 2014, and has remained flat in Claremore during that same period. In Muskogee County, where Sunday sales are still prohibited, sales tax revenue reported during that time frame has trended upward.

City Manager Howard Brown Jr. said he has no hard data to show Muskogee would realize increased sales tax revenue if voters approve the ballot measure on Tuesday. The only information he has is that which was provided by vendors at retail trade shows.

"We are just looking at a way to spur economic growth, and we think this is one way to do it," Brown said. "From a city manager's perspective, I am interested only in the financial impact this could have on the city — I know we have residents here who travel to other communities on Sunday where liquor is sold by the drink at restaurants on Sunday."

With regard to increased private investment from outside developers, Hayes said he knows of no specific instance where a company opted against opening a restaurant in one city or another solely because of blue laws. But he knows of at least two companies of which principals, citing increased sales ranging from 31 percent to 37 percent at locations where there are no blue laws, say they would rather build new restaurants where liquor can be sold on Sunday. 

State law authorizes voters in individual counties to decide whether eating and drinking establishments can sell liquor, wine and strong beer for on-premises consumption. Records kept by the Alcoholic Beverage Laws Enforcement Commission show only two of the six counties that abut Muskogee County restrict liquor-by-the-drink sales: Cherokee County bans Sunday sales, and Haskell County voters have yet to approve liquor by the drink.

Precinct polling for the upcoming special election in Muskogee County will be from 7 a.m. to 7 p.m. Tuesday.

Reach D.E. Smoot at (918) 684-2901 or dsmoot@muskogeephoenix.com.